THE regulated fuel price caps are stable at K3,710 for Octane 92 and K3,815 for Octane 95, K4,240 for diesel and K5,140 for premium diesel for the second consecutive week ending 10 September.
The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in Southeast Asia, influences the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
The committee governs the market to ensure stable prices and secure supply. Under the guidance of the Supervisory Committee, the Petroleum Products Regulatory Department has been issuing daily reference wholesale prices to ensure price stability for energy consumers.
The committee is inspecting the fuel stations to see whether they are overcharging. Authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging above the set reference rate.
As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. Domestic fuel prices are highly correlated with international prices. The State is steering the market to mitigate the loss experienced by the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries.
Some countries levied higher tax rates and hiked oil prices than Myanmar’s. However, Malaysia’s oil sector receives government subsidies, and the prices are about 60 per cent lower than those of Myanmar. Every country lays down different policy patterns to fix oil prices, the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated. — NN/KK
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